Gillanders Arbuthnot Challenges GST Demand from West Bengal Authorities
On March 3, 2025, Gillanders Arbuthnot and Company Limited was formally notified of a substantial Goods and Services Tax (GST) demand by the Joint Commissioner of the State Tax, Goods and Services Tax Department in West Bengal. This order called for a tax payment totaling ₹3,06,64,822, with additional penalties and interest amounting to ₹1,18,87,218 and ₹30,66,481, respectively.
Background of the Demand
The order was issued as per Section 73(9) of the Central Goods and Services Tax (CGST) Act, 2017, and the West Bengal Goods and Services Tax (WBGST) Act, 2017, alongside Section 20 of the Integrated Goods and Services Tax (IGST) Act, 2017. The assessment period under scrutiny covers the financial year 2019-2020. Allegations include wrongful availment and insufficient reversal of Input Tax Credit (ITC), which subsequently led to a shortfall in tax payments.
Company’s Response
In light of the demand, Gillanders Arbuthnot is preparing an appeal to contest the findings. The company has announced its intention to file an appeal with the Commissioner (Appeals), signaling its proactive approach to dispute the order laid against it. This development has been disclosed following Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlighting the company’s commitment to transparency in its operations.
Impact and Future Steps
The financial implications of this demand are significant, as they may affect the company’s liquidity and ongoing operations. As Gillanders Arbuthnot moves forward with its appeal, industry participants will be keenly observing the case for its potential precedent and impact on the broader regulatory landscape concerning GST compliance.
This situation underscores the complexities businesses face regarding GST compliance in India, particularly in light of the stringent provisions enforced by tax authorities. Gillanders Arbuthnot’s pursuit of legal recourse exemplifies the challenges companies often must navigate in maintaining compliance while managing operational costs.
